BFA launches Feasibility Study to Assess Market for New Equity Fund to Help Small Businesses
Study to examine the impact of providing capital to New Hampshire businesses that may be seeking buyers or investors.
January 23, 2020 –The New Hampshire Business Finance Authority announces plans to launch a comprehensive study to determine whether there is a demand for a new state-focused private equity fund to help small businesses. The fund would purchase or invest in small businesses so they can grow, and the study will be funded in part by the New Hampshire Charitable Foundation.
Too often, family-owned and local privately-held companies cease operations because they don’t have a succession plan or they lack visibility to investors/buyers to grow the company during a period of transition. The purpose of this study is to determine whether there is enough of a market to create a fund to keep these companies rooted in New Hampshire.
“These small companies are vital to the New Hampshire economy and offer high-quality jobs but in many cases operate ‘under the radar’ of traditional Private Equity Funds,” stated James Key-Wallace, Executive Director of the New Hampshire Business Finance Authority. “Our goal with this study is to determine whether there are unmet needs and work to find a way to support these companies so they can continue to contribute to the New Hampshire economy.”
The study will focus on companies with at least $5 million in revenue and 25-100 employees, primarily operating in the manufacturing and specialty services sectors.
The study will be led by local entrepreneur and investor John Gargasz with support from UNH business student, Teddy McNulty. They will be reaching out to lenders, the businesses community, and public sector leaders to determine feasibility. Any business owner who is considering selling their company or seeking outside investment but wants to ensure the company stays in New Hampshire should reach out to the New Hampshire Business Finance Authority at NHBFA.com/news to learn more.
About the NHBFA
The Business Finance Authority (BFA) was created to foster economic development and create
employment in New Hampshire. The BFA accomplishes these objectives by working with New Hampshire’s banking, business, and economic development sectors to develop and implement programs that expand the availability of credit in the state. Our customers include manufacturers, small and medium-sized businesses, health providers, and non-profit educational and cultural organizations.